Spruce Pine Mfg

question 102

Multiple Choice

Spruce Pine Mfg. Co. has total fixed costs of $300,000 a year. The owner estimates that average variable costs for its product will be about $30 next year. The selling price to wholesalers will be $50. The break-even point is:

• A) 6,000 units.
• B) 10,000 units.
• C) 12,000 units.
• D) 15,000 units.
• E) None of these alternatives is correct.

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Definitions:

Payment Plan

A payment plan is an agreement to pay off an owed amount over a designated period, through specified number of installments.

Order Of Relief

A court order that provides a debtor protection from creditors under bankruptcy proceedings, initiating the automatic stay.

Preferential Payment

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another.

Insolvent Debtor

A debtor who cannot pay debts in a timely fashion.